NATURALGAS here on a very volatile bounce.
In the previous thread I identified the 1.618 as a potential area for reversal and shorted it there.
Since then I've been working on overshoot ratios and if I was to do it again I would have identified the 1.786 ($9.6) as a possible topping extremity and that was pretty much the top. And this was also a 0.77 retracement (just shy of 0.786) from ATH.
This time around NATURALGAS is on the bounce and good chance it will print similar ratios.
If it did print another 0.77 ($8.42) retracement then it would also again tag the previous 1.618 ($8.38).
The way I see it is this is going to be too much to resist for the market driving algos and I would say there is a very good chance that this will get hit and provide a retracement top to short.
And this is why I took some profit at support because if this idea is correct - after such an enormous 44% fall it would return to break even and thats really not ok 😄.
I have a short limit order just below the 1.618.
Not advice.
In the previous thread I identified the 1.618 as a potential area for reversal and shorted it there.
Since then I've been working on overshoot ratios and if I was to do it again I would have identified the 1.786 ($9.6) as a possible topping extremity and that was pretty much the top. And this was also a 0.77 retracement (just shy of 0.786) from ATH.
This time around NATURALGAS is on the bounce and good chance it will print similar ratios.
If it did print another 0.77 ($8.42) retracement then it would also again tag the previous 1.618 ($8.38).
The way I see it is this is going to be too much to resist for the market driving algos and I would say there is a very good chance that this will get hit and provide a retracement top to short.
And this is why I took some profit at support because if this idea is correct - after such an enormous 44% fall it would return to break even and thats really not ok 😄.
I have a short limit order just below the 1.618.
Not advice.
Comment:
NATURALGAS looking very impulsive here and top close the week and my bias has changed - I think more likely now another wave up is coming see next thread.
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